Industry Insights
The global packaging additives market size was 61.50 kilo tons in 2016 and is expected to witness a substantial growth due to the increasing demand for packing solutions across various industries including food, cosmetics, and pharmaceuticals. Moreover, growing consumer awareness and government initiatives to use additives such as antistatic additives and oxygen scavengers, which are eco-friendly and can be easily recycled are anticipated to boost the market over the forecast period.
Global packaging additives market, by application, 2014 - 2024 (USD Million)
The growth of the packaging market has been the primary factor driving the growth of additives industry. The global packaging industry was valued at USD 866.7 billion in 2016 and is anticipated to grow at a CAGR of 3.8% from 2017 to 2024. The growth of the additives market is expected to grow in tandem with the packaging industry.
Over the past few years, numerous companies have been undertaking strategic mergers & acquisitions to increase their presence in the global market. Also, companies are focusing on capacity expansions to cater to the growing global demand. For instance, in May 2017, Clariant announced plans to invest in two production facilities in China for additives for paints, inks, and packaging. Furthermore, companies are heavily investing in the R&D to come up with the new solutions and products in the sector.
Segmentation by Type
• Antimicrobial agents
• Anti-fog agents
• Antistatic agents
• Clarifying agent
• Oxygen scavengers
• UV stabilizers
• Others
Oxygen scavengers are expected to grow at the fastest CAGR of 5.5% over the forecast period. These additives have additional benefits such as removing and absorbing oxygen that is left in the packed products which help in extending the shelf life of the product.
Furthermore, oxygen scavengers have the capability to absorb the surrounding environment and keep the products undamaged without changing its properties. As a result, oxygen scavengers are likely to grow significantly in the pharmaceutical sector. These additives provide benefits for the packaged products such as removing of odour, protecting it from the external environment, not changing the properties of the end product and which are expected to drive the market for packaging additives globally.
Segmentation by Product
• Rigid
• Flexible
• Others
Rigid packaging accounted for 78.5% of the overall volume share in 2016 and is anticipated to witness lucrative growth over the forecast period. Growing demand for rigid packing solutions for manufacturing bottles, closures and cups coupled with the increasing consumption of these products is expected to fuel the growth of the market.
Flexible packaging is likely to witness growth over the forecast period owing to an increasing demand for pouches and bags which uses these additives as their ingredients to keep them protected, particularly for fresh products. This kind of packing is increasingly used for vegetables, dry foods, and fruits chocolates.
Segmentation by Application
• Food
• Pharmaceutical & Healthcare
• Beverages
• Cosmetic & Personal Care
Food accounted for 42.2% of the market in terms of revenue in 2016 as a result of the increasing demand for ready-to-eat food. Shifting trend from the traditional way of packaging to the use of modern materials which provides good barrier protection from external environment conditions which helps in maintaining the quality of the food is expected to bolster the growth of the market.
Cosmetic & personal care application is expected to witness growth over the forecast period due to the increasing demand for the barrier coating in packing these products and which protects the product from leaking of fluids, oxygen, and moistures. The growth of the personal care products market is expected to provide a stimulus to the growth of the additives industry over the projected period.
Segmentation by Region
• North America
• U.S.
• Europe
• UK
• Germany
• Asia-Pacific
• India
• China
• Central & South America
• Middle East & Africa
Asia Pacific held the largest market share accounting for 34.9% of the volume in 2016. The presence of a robust packaging sector in the region resulted in the high demand for additives over the past few years, and the trend is expected to continue on account of the development of the sector over the next few years.
Increasing demand for the use of antimicrobial agents, oxygen scavengers and antistatic additives to enhance the aesthetic appeal and shelf-life of the packed product is expected to drive the growth. Furthermore, increasing consumption of the ready-to-eat food on account of growing number of working population, particularly woman, coupled with the changing lifestyle of consumers is expected to play a major role in driving the demand. Increasing number of governments norms to use the biodegradable products is anticipated to provide an opportunity for the growth of the market over the forecast period.
Competitive Landscape
The key players in the global market are Clariant, Adeka Corporation, Amcor, Songwon Industrial Co. Ltd, ALTANA AG, Addivant, Cytec Solvay Group, BASF SE, E.I. Du Pont De Nemours & Company and AkzoNobel. Investments in the R&D with continuous developments and technological up gradation are some of the major factors to strengthen the position of the above companies in the global industry. To increase their share and presence, companies are coming up with new product launches, besides indulging in mergers & acquisitions and partnerships.
